3rd yr banking vs. rolling the dice in PE market
Which would be the better career move: (a) 3rd year at a middle market bank or (b) analyst/pre-mba associate position at PE firm (non top 20)?
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if I had the choice I'd go with the third year, my thought process is that it'll be easier to get into better PE firms when you have a "3rd year analyst" on your resume
Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...
Yes. Go with third year. Should put you into 'post-MBA' territory.
why is that putting you in the post MBA territory? what happens to 2nd year analysts if they dont go to get their MBA when the 3rd year comes?
i think the only reason people don't go for a 3rd yr is because they're afraid of taking even mnore years of their lives than they already have due to the all-nighters, etc.
Third year sounds pretty BA (bad ass) on a resume in my opinion.
BH - I was in the same position (currently in my 3rd year). To be honest, I don't know what the better move is, and I submit that it's specific to your situation.
I was looking to move over to the buy-side last year, but nothing too appetizing came along, and I had a 3rd year offer in my back pocket. Stayed on by default, I guess.
My problem now is: Do I take an associate offer in my current group (which is a possibility, and which I don't really want), or go through essentially the same exhausting process I went through about a year ago, with no backstop in place if I don't get what I want?
I'm not sure that having "3rd year" on your resume is a distinct advantage over talented 2nd years for the PE shops, but who knows. I have heard that it looks good for b-school applications, but that's all been anecdotal and I don't really have any concrete evidence to prove it.
Hell, I may go teach high school and coach baseball for a couple of years, apply to schools, invest my money, and take some vacation. All up in the air right now.
If you're looking for buyside jobs without the 3rd year offer, PE firms are going to wonder why it wasn't extended to you. If you do have the 3rd year offer, and decide to stay on, PE firms are going to wonder if you weren't good enough to get decent PE jobs after your 2nd year. I guess as long as you have your reasons and your story straight, you're fine.
Yep, just have a story that makes sense.
Most of my friends that failed to get good PE jobs and were invited for 3rd years are switching to other groups (for example, M&A to Lev Fin). That way their story reads more like "I felt the learning curve in M&A had somewhat flattened and wanted to round out my experience before I got out of banking..."
TireKicker, why not just swap jobs with me!
Just kidding. I'm curious. Why aren't you interested in becoming an associate?
There are a few reasons why I wouldn't take the offer (and only one reason I would...obviously):
1) I'm not convinced that I want a career as a banker at this point. And if I make the jump to associate, that effectively kills the reason to go to business school (at least from a near-sighted perspective).
2) I want to get out of real estate (a well-hashed theme on the forum, for anyone who's been fortunate enough to read and glean wisdom from my posts).
3) I at this point still want to go to business school--first, to reinvent myself from a career standpoint; and second, to have the opportunity to meet a nice, intelligent, undergraduate future schoolteacher or nurse (to borrow another theme from the forum) with whom to sire 4 or 5 future Olympic athletes / world-renowned cancer researchers.
you are really strange. i know you're joking about the olympics/cancer research stuff, but i still think you have some weird plans and seem like a major creep....
You can go work somewhere else, for one...lots of "Pre-MBA" analyst or associate positions exist.
Not sure I understand the question (or even if it was addressed to me?)--but an associate position in IB is a post-MBA designation. And if you're already an associate without having incurred the expense of an added degree, it makes little sense to go back to school--only to come out as an associate again.
I've also thought about getting away from RE. I'm in real estate private equity, but I've realised that it was probably just an illusion that the grass was greener on the other side. I do want to beef up on my non RE work though from a career standpoint. I'm not sure what I would be able to do as an alternative if the RE market tanks (RE related distressed investing? work-outs?)
Why not spend an extra year or two in IB as an associate (in RE or at another group) and go to b-school, live the good life for two years and then go elsewhere if you still feel like it.
I think that I'll spend then next 2-3 years in RE in some capacity, trying to some good work and then maybe think about the next step (b-school, academia, bohemia, etc...)
I would imagine that as an associate you would be much more attractive to b-schools and the outside world.
unless you have strong personal reasons to remain in banking. most people who are looking to get into PE/HFs will leave after 2 years. to reiterate poster above, PE shops will wonder why you stayed on and weren't good enough to get a PE job after 2 years.
unless you want to be a career banker, 3 year really kind of sucks.
Interesting point of view FreeCashFool. You say it with some authority. Are you at a PE or an IB?
I'm actually considering a move into another REPE shop, a PE firm focusing on RE related businesses or an RE group at an IB. I'm currently an associate. I haven't decided yet though as I'm doing very well where I am.
To me, I view this stage of my career as one where I am building a reputation, network and skillset/track record. I'm not sure that my career will follow the rigid career plan that most people speak about on this forum.
I wouldn't say it "sucks"...it's just a temporary no-man's land.
Fact is, I'll get very good reviews from my current group (including the MDs) if and when I decide to leave...and I could very easily go into real estate private equity at the end of the 3rd year.
Do that for a couple of years, then b-school, and then whatever I want to do after that.
I'll by then have met my future nurse or schoolteacher, and will have set the whole siring process into motion.
It's driving me nuts! Doesn't sire mean vampire?
Whatever its many meanings, it ALSO means the exercise of procreating (on the part of a male).
it's exercise :0
I'm a 3rd year and I think it helped me get interviews and subsequently, my offer (top-tier PE). If you can live the life for yet another year, go for it.
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